7 U.S. Code § -

The term “cooperative” has the meaning given the term in section 402 of the Food for Peace Act (7 U.S.C. 1732).

(2) Corporation

The term “Corporation” means the Commodity Credit Corporation.

(3) Developing country

The term “developing country” has the meaning given the term in section 402 of the Food for Peace Act (7 U.S.C. 1732).

(4) Eligible commodity

The term “eligible commodity” means an agricultural commodity, or a product of an agricultural commodity, in inventories of the Corporation or acquired by the President or the Corporation for disposition through commercial purchases under a program authorized under this section.

(5) Eligible entity

The term “eligible entity” means—

(A)the government of an emerging agricultural country;

(B)an intergovernmental organization;

(C)a private voluntary organization;

(D)a nonprofit agricultural organization or cooperative;

(E)a nongovernmental organization; and

(F)any other private entity.

(6) Food security

The term “food security” means access by all people at all times to sufficient food and nutrition for a healthy and productive life.

(7) Nongovernmental organization

The term “nongovernmental organization” has the meaning given the term in section 402 of the Food for Peace Act (7 U.S.C. 1732).

(8) Private voluntary organization

The term “private voluntary organization” has the meaning given the term in section 402 of the Food for Peace Act (7 U.S.C. 1732).

(9) Program

The term “program” means a food assistance or development initiative proposed by an eligible entity and approved by the President under this section.

(c) Program

In order to use the food resources of the United States more effectively in support of developing countries, and countries that are emerging democracies that have made commitments to introduce or expand free enterprise elements in their agricultural economies through changes in commodity pricing, marketing, input availability, distribution, and private sector involvement, the President shall enter into agreements with eligible entities to furnish to the countries eligible commodities made available under subsections (e) and (f) of this section.

(d) Consideration for agreements

In determining whether to enter into an agreement under this section, the President shall consider whether a potential recipient country is committed to carry out, or is carrying out, policies that promote economic freedom, private, domestic production of eligible commodities for domestic consumption, and the creation and expansion of efficient domestic markets for the purchase and sale of such eligible commodities. Such policies may provide for, among other things—

(1)access, on the part of farmers in the country, to private, competitive markets for their product;

(2)market pricing of eligible commodities to foster adequate private sector incentives to individual farmers to produce food on a regular basis for the country’s domestic needs;

(3)establishment of market-determined foreign exchange rates;

(4)timely availability of production inputs (such as seed, fertilizer, or pesticides) to farmers;

(5)access to technologies appropriate to the level of agricultural development in the country; and

(1)The Corporation shall make available to the President such eligible commodities as the President may request for purposes of furnishing eligible commodities under this section.

(2)Notwithstanding any other provision of law, the Corporation may use funds appropriated to carry out title I of the Food for Peace Act [7 U.S.C. 1701 et seq.] in carrying out this section with respect to eligible commodities made available under that Act [7 U.S.C. 1691], and subsection (g) of this section does not apply to eligible commodities furnished on a grant basis or on credit terms under that title.

(3)The Corporation may finance the sale and exportation of eligible commodities, made available under the Food for Peace Act [7 U.S.C. 1691 et seq.], which are furnished under this section. Payment for eligible commodities made available under that Act which are purchased on credit terms under this section shall be on the same basis as the terms provided in section 103 of that Act [7 U.S.C. 1703].

(4)In the case of eligible commodities made available under the Food for Peace Act for purposes of this section, section 406 of that Act [7 U.S.C. 1736] shall apply to eligible commodities furnished on a grant basis under this section and sections 402, 403(a), 403(c), and 403(i) of that Act [7 U.S.C. 1732, 1733(a), (c), (i)] shall apply to all eligible commodities furnished under this section.

(5) No effect on domestic programs.— The President shall not make an eligible commodity available for disposition under this section in any amount that will reduce the amount of the eligible commodity that is traditionally made available through donations to domestic feeding programs or agencies, as determined by the President.

(f) Provision of eligible commodities to developing countries

(1)The Corporation may provide for—

(A)grants, or

(B)sales on credit terms,

of eligible commodities made available under section
1431(b) of this title for use in carrying out this section.

(2)In carrying out section
1431(b) of this title, the Corporation may purchase eligible commodities for use under this section if—

(A)the Corporation does not hold stocks of such eligible commodities; or

(B)Corporation stocks are insufficient to satisfy commitments made in agreements entered into under this section and such eligible commodities are needed to fulfill such commitments.

(3)No funds of the Corporation in excess of $40,000,000 (exclusive of the cost of eligible commodities) may be used for each of fiscal years 1996 through 2018 to carry out this section with respect to eligible commodities made available under section
1431(b) of this title unless authorized in advance in appropriation Acts.

(4)The cost of eligible commodities made available under section
1431(b) of this title which are furnished under this section, and the expenses incurred in connection with furnishing such eligible commodities, shall be in addition to the level of assistance programmed under the Food for Peace Act [7 U.S.C. 1691 et seq.] and may not be considered expenditures for international affairs and finance.

(5) Sale procedure.— In making sales of eligible eligible [1] commodities under this section, the Secretary shall follow the sale procedure described in section 403(l) of the Food for Peace Act [7 U.S.C. 1733(l)].

(g) Minimum tonnage

Subject to subsection (f)(3) of this section, not less than 400,000 metric tons of eligible commodities shall be provided under this section for the program for each of fiscal years 2002 through 2018.

(h) Prohibition on resale or transshipment of eligible commodities

An agreement entered into under this section shall prohibit the resale or transshipment of the eligible commodities provided under the agreement to other countries.

(i) Displacement of United States commercial sales

In entering into agreements under this section, the President shall take reasonable steps to avoid displacement of any sales of United States commodities that would otherwise be made to such countries.

(j) Multicountry or multiyear basis

(1) In general

In carrying out this section, the President, on request and subject to the availability of eligible commodities, is encouraged to approve agreements that provide for eligible commodities to be made available for distribution or sale by the recipient on a multicountry or multiyear basis if the agreements otherwise meet the requirements of this section.

(2) Deadline for program announcements

Before the beginning of any fiscal year, the President shall, to the maximum extent practicable—

(A)make all determinations concerning program agreements and resource requests for programs under this section; and

(B)announce those determinations.

(3) Report

Not later than December 1 of each fiscal year, the President shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a list of programs, countries, and eligible commodities, and the total amount of funds for transportation and administrative costs, approved to date for the fiscal year under this section.

(k) Effective and termination dates

This section shall be effective during the period beginning October 1, 1985, and ending December 31, 2018.

(l) Administrative expenses

(1)To enhance the development of private sector agriculture in countries receiving assistance under this section the President may, in each of the fiscal years 1996 through 2018, use in addition to any amounts or eligible commodities otherwise made available under this section for such activities, not to exceed $15,000,000 (or, in the case of fiscal year 1999, $12,000,000) of Corporation funds (or eligible commodities of an equal value owned by the Corporation), to provide assistance in the administration, sale, and monitoring of food assistance programs, and to provide technical assistance for monetization programs, to strengthen private sector agriculture in recipient countries.

(2)To carry out this subsection, the President may provide eligible commodities under agreements entered into under this section in a manner that uses the commodity transaction as a means of developing in the recipient countries a competitive private sector that can provide for the importation, transportation, storage, marketing and distribution of such eligible commodities.

(3)The President may use the assistance provided under this subsection and proceeds derived from the sale of eligible commodities under paragraph (2) to design, monitor, and administer activities undertaken with such assistance, for the purpose of strengthening or creating the capacity of recipient country private enterprises to undertake commercial transactions, with the overall goal of increasing potential markets for United States agricultural eligible commodities.

(4) Humanitarian or development purposes.— The Secretary may authorize the use of proceeds to pay the costs incurred by an eligible entity under this section for—

(A)

(i)programs targeted at hunger and malnutrition; or

(ii)development programs involving food security;

(B)transportation, storage, and distribution of eligible commodities provided under this section; and

(C)administration, sales, monitoring, and technical assistance.

(m) Presidential approval

In carrying out this section, the President shall approve, as determined appropriate by the President, agreements with agricultural trade organizations, intergovernmental organizations, private voluntary organizations, and cooperatives that provide for—

(1)the sale of eligible commodities, including the marketing of eligible commodities through the private sector; and

(2)the use of the proceeds generated in the humanitarian and development programs of such agricultural trade organizations, intergovernmental organizations, private voluntary organizations, and cooperatives.

(n) Program management

(1) In general

The President shall ensure, to the maximum extent practicable, that each eligible entity participating in 1 or more programs under this section—

(A)uses eligible commodities made available under this section—

(i)in an effective manner;

(ii)in the areas of greatest need; and

(iii)in a manner that promotes the purposes of this section;

(B)in using eligible commodities, assesses and takes into account the needs of recipient countries and the target populations of the recipient countries;

(C)works with recipient countries, and indigenous institutions or groups in recipient countries, to design and carry out mutually acceptable programs authorized under this section; and

(D)monitors and reports on the distribution or sale of eligible commodities provided under this section using methods that, as determined by the President, facilitate accurate and timely reporting.

(2) Requirements

(A) In general

Not later than 270 days after May 13, 2002, the President shall review and, as necessary, make changes in regulations and internal procedures designed to streamline, improve, and clarify the application, approval, and implementation processes pertaining to agreements under this section.

(B) Considerations

In conducting the review, the President shall consider—

(i)revising procedures for submitting proposals;

(ii)developing criteria for program approval that separately address the objectives of the program;

(iii)pre-screening organizations and proposals to ensure that the minimum qualifications are met;

(iv)implementing e-government initiatives and otherwise improving the efficiency of the proposal submission and approval processes;

(v)upgrading information management systems;

(vi)improving commodity and transportation procurement processes; and

(vii)ensuring that evaluation and monitoring methods are sufficient.

(C) Consultations

Not later than 1 year after May 13, 2002, the President shall consult with the Committee on Agriculture, and the Committee on International Relations, of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate on changes made in regulations and procedures.

(3) Reports

Each eligible entity that enters into an agreement under this section shall submit to the President, at such time as the President may request, a report containing such information as the President may request relating to the use of eligible commodities and funds furnished to the eligible entity under this section.

(o) Private voluntary organizations and other private entities

In entering into agreements described in subsection (c) of this section, the President (acting through the Secretary)—

(1)shall enter into agreements with eligible entities described in subparagraphs (C) and (F) of subsection (b)(5) of this section; and

The Food for Peace Act, referred to in subsecs. (e) and (f)(4), is act July 10, 1954, ch. 469, 68 Stat. 454, which is classified generally to this chapter (§ 1691 et seq.). Title I of the Act is classified to subchapter II (§ 1701 et seq.) of this chapter. For complete classification of this Act to the Code, see Short Title note set out under section
1691 of this title and Tables.

Codification

Section was enacted as part of the Food Security Act of 1985, and not as part of the Food for Peace Act which comprises this chapter.

Subsec. (e)(1). Pub. L. 110–246, § 3014(b)(2), struck out “determined to be available under section 401 of the Agricultural Trade Development and Assistance Act of 1954” after “such eligible commodities”.

2002—Subsecs. (b), (c). Pub. L. 107–171, § 3106(b)(1), added heading and text of subsecs. (b) and (c) and struck out former subsecs. (b) and (c) which read as follows:

“(b) In order to use the food resources of the United States more effectively in support of developing countries, and countries that are emerging democracies, that have made commitments to introduce or expand free enterprise elements in their agricultural economies through changes in commodity pricing, marketing, input availability, distribution, and private sector involvement, the President is authorized to enter into agreements with the governments of such countries (including the independent states of the former Soviet Union), or with private voluntary organizations, nonprofit agricultural organizations, cooperatives, intergovernmental organizations, or other private entities, to furnish commodities made available pursuant to subsections (e) and (f) of this section. Such agreements may provide for commodities to be furnished on a multiyear basis.

“(c) As used in this section, the term ‘commodities’ means agricultural commodities and the products thereof.”

Subsec. (e). Pub. L. 107–171, § 3106(b)(2)(D), (E), (d), inserted heading, substituted “eligible commodities” for “commodities” and “Corporation” for “Commodity Credit Corporation” wherever appearing, inserted “, and subsection (g) of this section does not apply to eligible commodities furnished on a grant basis or on credit terms under that title” before period at end of par. (2), and added par. (5).

Pub. L. 107–171, § 3106(e)(2), which directed substitution of “$40,000,000” for “$30,000,000 (or in the case of fiscal year 1999, $35,000,000)”, was executed by making the substitution for “$30,000,000 (or, in the case of fiscal year 1999, $35,000,000)” to reflect the probable intent of Congress.

Subsec. (g). Pub. L. 107–171, § 3106(f), added subsec. (g) and struck out former subsec. (g) which read as follows: “Not more than 500,000 metric tons of commodities may be furnished under this section in each of the fiscal years 1986 through 2002.”

Subsec. (o). Pub. L. 107–171, § 3106(b)(2)(F), struck out subsec. (o) which read as follows: “As used in this section, the term ‘independent states of the former Soviet Union’ means the independent states of the former Soviet Union as defined in section
5602(8) of this title.”

1996—Subsec. (b). Pub. L. 104–127, § 227(1), struck out “(1)” before “In order to use”, inserted “intergovernmental organizations,” after “cooperatives,”, and struck out par. (2) which read as follows: “The annual tonnage limitation contained in subsection (g) of this section shall not apply with respect to commodities furnished to the independent states of the former Soviet Union during fiscal year 1993.”

Subsec. (f)(1)(B). Pub. L. 104–127, § 227(3)(A), struck out “in the case of the independent states of the former Soviet Union,” before “sales on credit terms,”.

Subsec. (f)(2) to (5). Pub. L. 104–127, § 227(3)(B)–(D), in par. (4), inserted “for each of fiscal years 1996 through 2002” after “may be used”, redesignated pars. (3) to (5) as (2) to (4), respectively, and struck out former par. (2) which read as follows: “Not less than 75,000 metric tons shall be made available pursuant to section
1431(b)(10)(C) of this title to carry out this section unless the President determines there are an insufficient number of eligible recipients.”

Subsec. (f)(1). Pub. L. 102–511, § 701(2), amended par. (1) generally. Prior to amendment, par. (1) read as follows: “Commodities made available under section
1431(b) of this title for use in carrying out this section shall be provided on a grant basis.”

Subsec. (j). Pub. L. 101–624, § 1572(1), redesignatedsubsec. (k) as (j) and struck out former subsec. (j) which read as follows: “Within 90 days after the end of each fiscal year in which an agreement under this section is in effect with respect to a country, the President shall report to the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate on the status of such agreement and the progress being made to implement private, free enterprise agricultural policies for long-term agricultural development in such country.”

Pub. L. 101–624, § 1516(7), struck out “entered into with a country” before “under this section”, and inserted “with respect to a country” after “effect”.

Committee on International Relations of House of Representatives changed to Committee on Foreign Affairs of House of Representatives by House Resolution No. 6, One Hundred Tenth Congress, Jan. 5, 2007.